Madison times. (Tallulah, Madison Parish, La.) 1884-1???, 1887-03-19
A GIGANTIC DEAL.
The Baltimore and Ohio Road
Sold.
Alfred Sully Secures Control OF
the Great System.
Eighteen Thousand Miles Under 0le
Managemsnt-Gould Not in
the Deal
4 Big Deal.

4 Big Deal.
New YORK. March 9-The Times stated TO
dav that it was authorized to announce that
the control of the Baltimore ard Ohio railroad
company had passed into the hands Of Alfred
Sullv of New York. The negotiations with
President Robert Garrett had been in progress
for some time, aud yesterday and late into last
night there were important meetings relative
10 the transaction, and to-day, - the paper
said Sully would be able to show in Wall
street a written contract, by virtue Of which
Garrett had put him into possession.
This is regarded as the greatest, and his
fair 10 be the most influential, railway deal
that has taken place in this country within
many years. The possibilities of this new
control is beyOnd estimation. BY the acquire
ment Of the Baltimore and Ohio road Suly and
his friends become the controllers OF what II
probably the most extensive railway system in
the world. IL stretches from New Ork almost
To the uttermOst parts of the south and far
into the west IL includes the Central rail
road of New Jersey, the Philadelphia and
Reading, the Richmond Terminal and Rich
mond and Danville properties, the East len.
nessee, Virginia and Georgia lines the Cen
tral railroad IF Georgia, and now, last Of all,
the Baltimore and OHIO, and all OF these prop
critics there is TO be made one great trunk line
with ls.UU0 miles of track.
\ GRAND COAST MONOPOLY.
Alfred Sully was applied to to-day Tor
statement in regard to the reported sale Of the
Baltimore and Ohio railroad 10 the syndicate
represented bv him. He said be could not say
ANYTHING definite. but admitted that IL was
pretty well understood that the road would
pass from CARROTS control 10 that ot the
syndicate.
A prominent broker remarked to-day that
the new combination would represent the New
YORK Central Erie, Pennsylvania Central.
Reading and jersey Central roads, aud that
these would command all the business coming
into New York. In connection with the
Richmond Terminal and East Tennessee,
Virginia and Georgia roads, the new system
would have control of nearly all the seacOa>t
lines from New York 10 Florida. In cOEnec-
tiOn, too. with the indianapolis Bloomington
and Western railroad and the subsequent alb
SOrptiOn by that road of the Ohio southern,
the combination would control all the 5itulnin-
Gus coal territory except that covered Dy
Buffalo Rochester and Pittsburg.
The executive committee of the Richmond
Terminal company met to-day to consider the
matter Of absorbing the Baltimore and Ohio
and other systems, but action was deferred
until tomorrow. 1t is understood that the
purchase of the Baltimore and Ohio viii be
provided for br a collateral trust, in which the
Baltimore and Ohio stock will be placed and
the bonds taken by a syndicate The counsel
for the company are now az work ON the Dc
tails Of the agreement
WHAT GARRETT HAS PROMISED.
As the matter now stands, Mr. Garrett has
given a written agreement OF what he Will
do in the premises aud this includes call on
4 ma ilrity of the stock at figure said To he
between 300 and 22O Mr. >ully and Mr.. Gar
rett have signed preliminary contract. aud
the finances of the Baltimore and OHIO compa-
ny are now being examined by parties identi-
fed with the First national bank syndicate,
which is to furnish the money To but the
v..,rtr- 60 for fpvp ffnrpf iBn has
gone it is favorable, the floating debt. which
has been reported at fromS 10 100000 10 Sl5,-
co... .0OO, having been found to be only about
S1,OOU0O0 The amount required 10 complete
the purchase will be about Sl7UOO,OO
There was some talk to-day about hclding
certain amounts of the stock, now in trust
and which can not be sold, in escrow and
issuing a ) year 10 per cent bond for the
same, but this is an outside matter and now
the understanding is that Mr.. Garrett Is to
deliver a working majority.
Mr. Gould up TO the present time has had
no direct connection with the deal, but # it is
carried through he will of course appear in the
interest of Western Union as one of the OBJ
iects Of this gigantic scheme Is to create har-
mony in telegraph as well as railroad matters.
The syndicate comprises: Calvin :. Brice
and General Samuel Thomas. of the East Ten
nessee: George ). Scott, formerly president OF
the Richmond and Danyille; George Z. Baker
and II. c. Eahnestock president and vice
president of the First National bank. aud
I their associates in southern railroad enter
prises. IN addition 10 Mr.. Sully and Austin Cor
bin. There are many surmises, of course. as 10
the other interests involved in the transac-
ton but in the absence Of positive action the
known members of the syndicate declined to
Emake public the names Of their assoc ates or
the extent of the ramfcat Gus involved IN the
radical change Of the ownership and manage
ment Of one of the oldest and most con-
servatvc railroad companies in the country
Il THE WESTERN UNION CONCERNED.
Dr. Norvin Green. president OF the Western
. Union telegraph company, remarked yester-
day: - know nothing whatever about the re-
ported sale of the Baltimore and Ohio rail-
road. but. TO say that the differences between
the telegraph companies will be adjusted, Is
merely the proposition that history repeats IT.
self. \ question of terms alone has preVcn ed
a settlement for a long time. have been
willing To take in tine opposition companies on
the basis of their actual value as matcrill Tor
our business. but the other companies have
based their claims on the amount of damage
thev could nhict upon We are not buy
ing opposition lines on that principle. Ot
course, we know there is no chance OF buyinG
the Baltimore and Ohio Telegraph system at
sheriff's sale. but on the other hand We do not
care to acquire ii at the valuation put on II as
one Of the assets on the railroad company. L
have no hesitation in saying that Overtures
for a settlement of telegraph matters nave
been made. 10 US recently, but they have been
refused on account of the wide difference OF
opinion in regard to the value OF the proper
ties offered US understand that the cost of
lis telegraph system stands at about 81, 90.
coo on the books Of the Baltimore aud ONO
railroad, but / am sure that we do not want lt
at that value
JAy GOULD NOT IN THE DEAL
When Jaw Gould was asked If be had any
interest in the proposed purchase Of the Bal
tiTnOre and Ohio railroad he replied: i am
not engaging in any new enterprises oi anv
kind. ! am IN a snug condition. do not uws
ANYTHING. aud NV time is well filled in 'Atna
after th, interests ] now have. There arr the
. elevated roads. the Missouri Pacific Sud De
Western Union telegraph. | find tnrt
, have plenty Of work in managing them
and at INV time of life. think a man ought
10 be contepted If be has got a little property
together I have often noticed that wGel
men 20 outside OF their regular business, IL
which they have achieved certain amount o.
success, they are apt 10 get what IS called,
believe the great head. That is the begin
. ming Of their complete overthrow.
. In regard 70 telegraph matters, can on
, IL say that il is not the policy Of the Western
Union 10 buv up OPPOSITION lines where they
are necessary to our business, but only at ;
price that represents the cost 10 US OF 0uld
iue new lines. We were asked lately If w'
would consent b. a general advance of rates
hut replied that the Western Union did no
first reduce rates and that il had been able 1,
live at the low tolls. In fact, | am clearly o
: the opinion that the true policy OF TIL:
! company is TO conform its business TO tn
/, cheap rates and force the opposition companies
tofollow the example. If | were to secure by
purcha>e or lease all the opposition com